Myron Knodel, manager of tax and estate planning with Investors Group, said that real-estate rookies are most often caught off guard by the land transfer tax which is assessed when a title is re-registered from one owner to another. In Ontario, the 2% does not apply until the home's value exceeds $400,000.
 
There's also an adjustment for property taxes depending on the time of the year the property is acquired, leaving buyers to assume their portion for the year.

Other unforeseen costs can arise after the home is purchased. Maintenance costs and insurance can creep up on homebuyers who have only budgeted for their monthly mortgage payments. In some cases, lawyers give an estimate of legal fees before disbursements, which are essentially the firm's out-of-pockets costs. While prices vary, in Ontario it costs about $200 for a $500,000 home.

Buying title insurance guards against disputes over a vendor's right to sell, building code violations, outstanding liens and outright fraud. Additionally, if the homebuyer obtains title insurance, a real estate lawyer can often save the buyer out-of-pocket costs on their legal bill.

By M. Sese
http://realestatepress.org